Determine the value of a share

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Reference no: EM1349759

Over the past 5 years, the dividends of the Gamma Corporation have grown from $0.70 per share to the current level of $1.30 per share (D0). This growth rate (computed to 1/10 of 1% accuracy) is expected to continue for the foreseeable future. What is the value of a share of Gamma Corporation common stock to an investor who requires a 20% return on an investment?

Reference no: EM1349759

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